Definition: Price Floors are the lowest prices any product can be legally sold at. They are used by the government to control prices of commodities from dropping too low.
ex. Minimum wage: the minimum price that worker's can be paid for their labor.
Price floors must be set above the equilibrium price in order for them to be effective.
The charity Alcohol Action Ireland wants to introduce a price floor for alcohol so that the selling of the product is restricted. The price floor would set a higher minimum price for alcohol so that it will be less accessible.
ex. Minimum wage: the minimum price that worker's can be paid for their labor.
Price floors must be set above the equilibrium price in order for them to be effective.
Price Floor Article
The charity Alcohol Action Ireland wants to introduce a price floor for alcohol so that the selling of the product is restricted. The price floor would set a higher minimum price for alcohol so that it will be less accessible.